Ukrainian based MHP reports drop in poultry production in Q3
MHP announced that at the beginning of the third quarter of this year its poultry stocks were down to 21,000 tons compared to the beginning of the third quarter from 2016 when they reached 46,300 tons. This resulted in a 13% decrease in poultry sales volumes in Q3 2017 compared to Q3 2016.
Furthermore, the company's poultry production volumes in the third quarter of this year remained relatively stable and were situated at 137,005 tons (Q3 2016: 139,740 tons). The poultry production for the first nine months of 2017 was also relatively stable, reaching 424,700 tonnes (9M 2016:426,085 tonnes).
"Sales of fresh chicken meat remained stable on the domestic market, while sales of frozen chicken meat both on the domestic market and for exports decreased, as a result of significant poultry stocks
decrease in Q2 2017. During the first nine months of 2017 third parties sales amounted to 419,080 tonnes of poultry, which is 4% higher than in 9M 2016," the MHP statement read.
Source: MHP
The main driver in MHP's total poultry sales growth was export
The company announced also that the volume of chicken meat exports totaled 52,990 tons in the third quarter of 2017, down by 8% compared to the similar period from 2016 "due to significantly higher sales of stocks during the period last year."
Regarding the first nine months of 2017, poultry exports saw an increase of 23% compared to the same period from the previous year and reached 176,015 tons, following the strategy of poultry stocks decrease and driven by significant exports in the second quarter of 2017.
"MHP continued to follow a strategy of both geographic diversification and a product mix optimization building-up its export volumes of chicken meat mainly in the EU and African countries as well as to UAE and Saudi Arabia. Out of total poultry sales volumes, poultry exports in 9M 2017 constituted around 42% vs 35% in 9M 2016."
The company also reported that the Dutch and Slovakian processing plants and sales/distribution office in the UAE have been performing in accordance with expectations and their business plans.
Poultry prices increased
Regarding prices, in the third quarter of this year, the average chicken meat price (domestic/export) was UAH 37.88 (EUR 1.21) per kilogram of natural weight (excluding VAT), with an annual increase of 30% and a rise of 15% compared to the second quarter of 2017.
In the first nine months of 2017, the average chicken meat price was UAH 34.06 (EUR 1.09), up by 23% compared to the similar period from the previous year.
"The increase in price year-over-year is mainly driven by export price growth as a result of product mix optimization undertaken by the Company in line with its export strategy," the MHP statement read.
In USD term, average MHP’s poultry prices in the thirds quarter of 2017 increased by 32% year-on-year and in the first nine months of 2017 increased by 18% year-on-year.
Source: MHP
Sausage and cooked meat sales increased
The company reported an increase of 5% in sausage and cooked meat sales volumes in the third quarter of 2017, reaching 9,920 tons. Whereas in the first nine months of 2017 sausage and cooked meat sales volumes increased by 10% to 27,170 tons as a result of a product promotion strategy and advertisement campaign both for the product range and for the brand.
Average sausage and cooked meat prices during the third quarter of 2017 increased by 16% to UAH 49.82 (EUR 1.60) per kilogram excluding VAT. In 9M 2017 the average price increased by 12% to UAH 46.96 (EUR 1.50) per kilogram excluding VAT.
Source: MHP
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EUR 1 = UAH 31.36
USD 1 = UAH 26.54
at 23.10.2017
Photo Source: MHP
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